Home > News > Newsmakers > PBGC Provides Almost a Billion Dollars to New York Teamsters Pension
Newsmakers

PBGC Provides Almost a Billion Dollars to New York Teamsters Pension

The PBGC approved the grant money out of funding from the American Rescue Plan, for a struggling pension with over 30,000 participants.
By Paul Mulholland



The Pension Benefit Guaranty Corporation provided $963.4 million in assistance to a troubled pension fund operated on behalf of the New York State Teamsters Conference Pension and Retirement Plan, a union pension fund for workers in the transportation industry that is based in Syracuse, New York.

The pension fund provides benefits to 33,643 participants, but those benefits were cut in October 2017 by an average of 20% to approximately 25,000 of those participants due to a lack of funding.

According to a press release from the union, it applied for Special Financial Assistance, available through the American Rescue Plan Act of 2021, in July.

The SFA provision of the American Rescue Plan Act allows for PBGC funding for severely underfunded multiemployer pension plans. Those that receive assistance must monitor the money, and the interest it generates separately from other sources of funding. The PBGC also only accepts investment-grade bonds as an investment for the funds it provides.

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The union says its pension fund sought and received a grant for $918 million. The discrepancy between this figure and the figure provided by the PBGC accounts for the interest that has been accruing since the Teamsters first applied for relief back in January.

According to the release, the teamsters union expects the PBGC to deliver the grant by December 8, and monthly payments can resume by January 1, 2023. Make-up payments to cover participants’ losses from the last four years will be made on March 1, 2023.

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Home > News > Newsmakers > Biden Appoints New Members to PBGC Advisory Committee
Newsmakers

Biden Appoints New Members to PBGC Advisory Committee

The four new appointees will join three other existing members representing employers, participants and the public.
By Paul Mulholland



President Joe Biden last week appointed four people to serve on the Pension Benefit Guaranty Corporation Advisory Committee.

The PBGC Advisory Committee is a seven-member committee appointed by the president. The appointees do not require Senate confirmation. Each member is to represent either labor (two), employers (two) or the public (three). Members serve three-year terms and advise the PBGC on its investment decisions and the discharge of its duties.

The four appointees are: Jeanmarie Grisi of New Jersey, Mike Jacobson of Maryland, Joe LoCicero of New York and Kweku Obed of Illinois. They will be joining the other three members: Preston Crabill, Lynn Franzoi and Guy Pinkman.

Grisi is a re-appointment; she will now serve as chair, representing employers. She is currently head of global pensions at Nokia and oversees more than $35 billion in benefit investments.

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Jacobson, representing the general public, recently retired as administrator of the National Automatic Sprinkler Industry Trust Funds, a position he held for 36 years. The NASI Trust Funds include three multiemployer pension funds that provide benefits to more than 10,000 retired participants.

LoCicero, representing the general public, is currently the chair of the Segal Group. He is also a fellow of the Conference of Consulting Actuaries and a member of the American Academy of Actuaries.

Obed, representing employers, is the managing director for Marquette Associates and serves on their board of directors.

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